For Kids

Home » Kids

How to Learn About Money Management for Kids

From earning to saving, here are all our best tips for how to get started learning about money management.


Guess what? Money is not only for adults! You can start earning, saving, and spending your own money! It’s never too early to begin learning about money. This is why we put together some simple and fun tips to help you do it the right way! 

Why Learning About Money Is Important For You

Wouldn’t it be great to buy a new toy, a bike, or a video game with your money? Yeah, that’s what we thought! And we totally believe that you can do it. But to get there, we have to figure out a few things first. For example:

  • How can you earn money?
  • How much money do you need to buy the things you want? 
  • How long do you need to work? 
  • How can you save some money?
  • How can you spend your money smartly?

Wanna find out the answers to these questions? Let’s go ahead and start learning about money. The more you know, the sooner you can get all the stuff you want and more. Ready to start today?

How to Develop Smart Money Management Habits

Earning Money

There are tons of fun ways for kids to earn some money. Here are a few kid-friendly ideas:

Help with Household Chores

Sure, you’ve already got some chores that you do around the house. And that’s part of being a member of your family; everyone’s gotta pitch in. 

But what if you picked up some extra tasks? And what if your parents gave you some cash for those chores? If that sounds interesting, here are some things you can suggest to your parents:

  • Unload the dishwasher
  • Fold laundry
  • Water the plants
  • Make the beds 
  • Clean the bathrooms
  • Set up the table
  • Wash your pets

Open a Small Business During the Weekends or the Summer

Remember all those times you tell your parents that you’re soooooo bored? What if you started a project that’s fun, keeps you entertained, and makes you money? 

We’re talking about starting a small business – and no, you’re not too young for it! There are tons of kid-preneurs out there making big bucks with their great ideas. You can be one of them, too.

The trick to becoming a successful business owner is to find something you love and run with it. These are some ideas to get you thinking:

  • Set up a lemonade stand 
  • Make beaded jewelry
  • Bake cookies 
  • Wash cars in the neighborhood 
  • Walk dogs
  • Do yard work 

No matter what you choose, being productive and earning money will make you feel proud of yourself!  

Need some inspiration for earning money? Make a wish list! Grab a piece of paper and write down all the things you’d love to have. When you’re scrubbing car tires or squeezing lemons, keep that wish list in mind for motivation!

Saving Money

Chances are unloading the dishwasher once or baking cookies a couple times won’t get you enough money to buy the things you want. But don’t worry, you’ll get there soon!

Here’s a step-by-step guide to saving your money as a kid:

  1. Go over your wish list and decide what you’d like to buy first. Is it the toy, the bicycle, or the video game? 
  2. Once you have your first choice, go ahead and find out how much it costs. Write down the price along with the amount you get paid. 
  3. Let’s say you picked the toy; the cost is $25 and you get paid $5 every week (you must be working really hard to earn that money!). 

If you save all the money that you get paid every week, in 5 weeks you’ll be able to buy your dream toy! Take a look at the math:

Week 1 – $5
Week 2 – $5
Week 3 – $5
Week 4 – $5
Week 5 – $5
TOTAL = $25

When you save with a purpose it’s easier to stay motivated!

Fun Tip: Get creative and make your own piggy bank to put your money in! This will make savings extra exciting! Look for items that you have around your home (like jars, cans, and cardboard boxes) and decorate them with markers, glitter, wrapping paper, or anything you like!

Keeping It Real

It’s great if you decide to work hard and save all your money! But what if a must-watch movie comes out on Disney+ and you can’t resist the temptation of streaming? Go for it! What would life be without movies, right? 

That’s why it’s always a good idea to keep some money for yourself and put some into savings. It’s up to you how to split your money. You could use what grown-ups call the 50/30/20 rule. It means 50% of your money goes to things you need, 30% to things you want and 10% to savings. 

Here’s how it works:

Imagine you earn $50 each week. With this rule, you’d keep:

$25 for what you need like, for example, a fund to pay for college in the future
$15 for what you want, like movies and other treats
$10 for saving for your dream toy

We know this is math-heavy and can be a little bit confusing for kids. But don’t worry too much about it now. At your age, all you need to remember is that it’s important to set some money aside for your future. If you like the math, check out our money math for kids guide!

Tracking your Spending

Wanna know how close you are to buying your dream toy? Then track your spending! An important part of being organized with money is knowing where your money is going.

All you have to do is write down your purchases each day and add them up at the end of the week. It will help you realize if you are spending more than you want to!

There are fantastic kid-friendly apps for free like Rooster Money or PiggyBot that help you track your purchases and make sure you’re saving for your goals. If you want to download these apps, remember to talk to your parents first!

Spend your Money Smartly

Are you ready to spend your hard-earned savings? Then it’s time to become a smart shopper! 

  • You know you can buy the same item from multiple stores at different prices, right? Remember to check out prices at several stores to see which one offers the best deal! 
  • Wait for big sales. Why pay full price when you may get the same toy for half the money? Sales happen year-round. Ask your parents when the next one is. Being patient will help you save big!
  • Have you heard of shopping coupons? Look for coupons in newspapers or magazines and take them to the store to get discounts on certain products!

For more spending tips, read our guide on how to spend money as a kid!

Feeling a Little Bit Stressed About Money?

Most of the time, parents and grandparents are happy to help you organize your money. Talk to them about your ideas for earning money, your wish list, and what you have in mind for needs, wants, and savings. 

Your family will be proud to see how far you’ve come and may come up with ideas to help you reach your goals! Don’t be shy to call a family meeting and bring everyone on board!

Money Terms You Should Know

Here’s a quick lesson on the money terms that you should know if grown-ups throw some big words that you don’t understand.

  • Money Management: The process of earning, saving and spending your money. 
  • Bank Account: When you want to keep money in the bank, you open an account in your name. This way the bank knows that money belongs to you.
  • Account Balance: The amount of money you have in your bank account.
  • Budget: A record of the money you earn and the money you spend. 
  • Credit: Borrowing money to buy something. Usually using a credit card or a loan. 
  • Deposit: When you add money to your bank account.
  • Interest: The little extra money the bank gives you when you put your money in a savings account. 
  • Withdrawal: When you take money out of your bank account or piggy bank. 
  • Debit Card: The plastic card used to make purchases at businesses with the money from your bank account. 

Books and Other Resources to Learn About Organizing Money 

Wanna continue learning about money? There are plenty of books and activities to help you! These are some of our favorites. Make sure to check out all of our recommendations over on our best money management books for kids and money management games for kids pages.

For Kids Ages 6-8

If You Made a Million is the story of a fun mathematical magician. It also includes exciting ideas on how you can earn money of your own! 

Curious About Money is a must-have to learn the different types of currency used throughout history, from seashells to bitcoin.

For Kids Ages 9-12

Wanna know how to earn and save money and invest and earn interest? Check out The Everything Kids’ Money Book
Show Me the Money: Big Questions About Finance will show you how the financial, business, and economic sectors of our society work.

Related Reading

About the Author

Lucia Caldera

Lucia Caldera is a writer who specializes in personal finance. Her goal is to create approachable content that sparks financial wellness and unlocks personal growth. Lucia's work reflects her passion for financial education as the key to reducing the wealth gap for future generations.

Last updated on: February 2, 2024